Weekly Report 05/12 -09/ 12/ 2011

The pair declined on Friday, yet it returned now to consolidate in areas around 0.9235. The incline seen doesn't affect the bearish Butterfly pattern, yet consolidation below 0.9330 suggests the return of the downside movement, while stability below the level of 0.9235 supports our negative outlook significantly. Stochastic is within overbought areas which provides further support to our negative expectations.

The trading range for this week is among the major support at 0.8880 and the major resistance at 0.9560.

The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.

Previous Report

RecommendationBased on the chart and explanations above, our opinion is selling the pair around 0.9235, and take profit in stages at (0.9110 and 0.8980) and stop loss above 0.9335 might be appropriate